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China Daily Website

VIDEO

Premier Wen on housing market regulations

Updated: 2012-03-14 15:18
(chinadaily.com.cn)

Premier Wen Jiabao meets both Chinese and foreign reporters after the closing ceremony of the annual session of the National People's Congress in the Great Hall of the People in Beijing on March 14, 2012.

Q: I am from People's Daily. I've seen a new round of housing market regulation with tough measures. How much will the price drop to meet the target of regulation? Will the regulation be abandoned half way due to local governments' interest?

A:I've reviewed the housing markets regulations in recent years. I think this issue deals with the relationship between the interests of China's central government and local governments, especially those of land sellers. It also involves the finance issues and the benefits of many housing enterprises. So that's why it is a tough problem. However, we still see improvements in this aspect, because of the central government's hard determination and effective measures.

China is a big country with more than 1.3 billion people, which is on the way to realize industrialization and urbanization. I believe people should have a place to live, but not necessarily their own apartments. The government will encourage people to rent houses.

Regarding the development of the housing market, I hope it will develop healthy and smoothly or it will endanger the entire economy. The price should be considered according to people's income, invest and proper benefits. What I want to say is that the current price is far beyond that goal.

 
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